NOVO receives $ 43 million construction loan to develop Grayson in Alexandria – Business Observer
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NOVO Properties received $ 43 million in construction funding for the development of The Grayson, a 119-unit multi-family project located in Alexandria, Virginia, learned Commercial Observer.
Avison Young facilitated the loan with Eaglebank, which represents 60% of the total cost of the project. The terms of the loan were not disclosed.
“This is a class A product, with around 13% of the 119 apartments intended for affordable housing”, Ryan riel, director of home loans at EagleBank, told Commercial Observer. âThe data shows that vacancy rates were relatively low for multi-family products in the submarket. Competition has intensified in recent years, but as new projects have been delivered, vacancy rates and rental rates continue to suggest that supply and demand have not been up to par. balance and that demand was stronger.
NOVO initially acquired the site in July 2019. Riel noted that after many attempts, this was the first opportunity for EagleBank to execute and close a construction loan for the development company.
âWe give them enough time to build and stabilize the project, and then the intention is that they turn it over to a more permanent lender,â Riel said. âHistorically, EagleBank has not provided permanent debt on residential properties. At this point, we will be bidders on this permanent debt when it is ready. “
Named after Sarah Gray, a prominent African-American educator in Alexandria in the late 1800s, The Grayson is located on Route 1 a few blocks from the Braddock Road subway station and close to Amazonis new HQ2 headquarters at National Landing and Virginie TechThe new Potomac Yards campus.
“The old town is a multifamily market in high demand with a relatively limited pipeline of future development”, Jon goldstein, director of Avison Young, told the CO. âThe Grayson is in a vibrant location. Tenants will have quick and convenient access to some of the region’s largest employment centers.
The project is expected to begin in October with an estimated completion date of fall 2023.
Avison Young’s team was led by Goldstein, Wes boatwright and Mike Yavinsky, all directors of the Washington, DC office of the firm.
Keith Loria can be contacted at [email protected].
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